- Recent gains are due to playing swing trades correctly, most of them are from the long side.
- Recent losses are due to option buys, most of them are from the short side(bought puts).
- I won't buy options in the future, unless it's an extreme market.
- I will write options, this way I keep a distance from the assigned value, and even assigned, may turn out to be a winner. The key is following:
- It has to be OTM puts, I can't choose ATM puts, the buffer is too small, specially use 3x ETFs.
- It has to be sized correctly, that is, 1x, 2x, 3x, 4x, turn aggressive at the end of the move, not the beginning, most of the cases, sitting on the sideline.
- The key is not to lose money, not to be in the market all the time.
- I invested huge amount of time in trading, and learned a lot, but now is time to do the most smart move: play small, play smart, and be a risk taker.
- Like play poker, I know I can win certain games, but if I play big tourney every weekend, I'll lost in a few weeks, since the odds is just to small.
- Same as in the market, I need to play only when I sense it's an overbought or oversold market, and it's near the end of a move.
- Sometimes, take quick profit is a great idea, even I miss the rest of the move; but sometimes, it could be a huge winner, like I bought early August(around 12th) when marekt tanked, I could sell at middle of August, when marekt rallied for 3 days, I didn't. All these TNA,TYH and MWJ, went from quick 4-5% gain to 5-10% loss. Yes, I sold today for a gain, but I could have 20% gain than this 5% gain. So, don't be greedy, and when I was right for a quick profit, take it.
Friday, September 3, 2010
More than one year
I changed.
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